THE new requirement for displaying drug prices in private clinics and hospitals, set to take effect on May 1, is not intended to control drug prices but to provide the public with better access to information about available medications, Minister of Domestic Trade and Cost of Living (KPDN), Datuk Armizan Mohd Ali said today.
Armizan, in a statement issued by the ministry, explained that the initiative would allow the public to compare prices and healthcare facilities, thereby helping individuals plan their spending based on the drug costs they would be expected to pay.
The minister said, in conjunction with National Consumer Day 2025, celebrated annually on March 15, KPDN has announced "Semarak Konsumerisme" (Reviving Consumerism) as the theme for the consumer movement agenda throughout 2025.
This theme aims to raise public awareness and encourage active participation in understanding their universal rights as consumers. “The consumer movement plays a vital role in shaping a more informed, responsible, and protected society of consumers. The active role of consumer movements is crucial in complementing the government’s ongoing efforts to protect the interests of the public as consumers.”
“The purpose of this order is simply to display prices, enabling the public to have access to information about the cost of medicines, allowing them to make informed choices based on their right to information and the right to choose,” said Armizan, adding, “It is important to note that this move is not meant to control drug prices."
The price display initiative is also expected to help curb Malaysia's high medical inflation rate. For 2025, Malaysia's projected medical inflation rate is 15%, higher than the Asia-Pacific average of 10% and the global average of 11%.
Previously, it was reported that private hospitals and clinics would begin displaying drug prices at their facilities starting May 1, in line with a broader policy of price transparency in healthcare services.
Health Minister Datuk Seri Dr Dzulkefly Ahmad had stated that the proposal was not opposed by the Association of Private Hospitals Malaysia (APHM), although concerns were raised by some general practitioners (GPs) who requested flexibility in its implementation.
Armizan added the Drug Price Transparency Mechanism (MKHU) had been presented during a National Action Council on Cost of Living (NACCOL) meeting on October 3, 2023, followed by a presentation to the Cabinet in January, which approved the mechanism.
The minister added that the price display requirement would be enforced under the AKHAP 2011, which allows the Minister to require goods or services to be labelled with their prices, including how the information should be provided, through an official order published in the government gazette. - March 14, 2025
